MomentumOptions.com Pre-Market Update for 6/8/2017
Transports Stay Strong/ Profit Alert (FLEX)
8:00am (EST)
The bulls ended a two-day skid on Wednesday as the Transportation sector stayed strong, led by the Airline stocks. Financial stocks also showed signs of life but are still on shaky ground as they work they way back towards key resistance levels. Today’s session could be pivotable in developing the next short-term trend with the bulls still looking to push fresh all-time highs.
The Dow added 37 points, or 0.2%, to end at 21,173. The blue-chips tested a low of 21,113 midday with support at 21,100-21,000 holding for the tenth-straight session. There is risk to 20,850-20,800 on a move below the latter. Resistance is at 21,450-21,500 on continued closes back above 21,200. Yesterday’s high reached 21,189 ahead of the closing bell.
The S&P 500 climbed 3 points, or 0.2%, to settle 2,433. The index opened higher at 2,432 before fading to an intraday low of 2,424. Short-term support at 2,425-2,420 held before the rebound to 2,335. Resistance remains at 2,450-2,460 on a move back above 2,440 and the all-time high.
The Nasdaq gained 22 points, or 0.4%, to close at 6,297. Tech nearly held positive territory throughout the session aside from the lunchtime dip to 6,267. Near-term upper support at 6,275-6,250was breeched, but held, before the run to 6,302 afterwards. Resistance remains at at 6,325-6,350 on continued closes above 6,300.
The Russell 2000 advanced 2 points, or 0.1%, to finish at 1,396. The small-caps made a morning run to lower resistance at 1,400-1,405 but levels that failed to hold. The backtest to 1,392 held upper support at 1,390-1,385.
The S&P 500 Volatility Index ($VIX, 10.39, up 0.06) traded to a low of 10.12 during the first half of action upper support at 9.75-9.50 holding. Resistance at 10.50-11.50 was split on the late day pop to 10.93.
I have a Profit Alert for one of our FLEX trades.
From desk to press, futures look like this: Dow (+14); S&P 500 (+1); Nasdaq 100 (+2).
Momentum Options Play List
Closed Momentum Options Trades for 2017: 34-11 (76%). All trades are dated and time stamped for verification. New subscribers can look at the past history to see how the trades have played out or to research our Track Records.
Do not risk more than 5% of your trading account on any one trade but do try to take all of the trades. Please remember, all “Exit Targets” and “Stop Targets” are targets. You should not have any “Hard Stops” entered to close any trades or “Exit Orders” in your brokerage account unless I list one. I will send out a “Profit Alert” or “New Trade” if I want you to close a position or if a new trade comes out. Otherwise, follow instructions at all times in the 8am and 12pm–2pm (EST) updates. Also, I will usually give you a heads-up if I think I’m going to send a Trade Alert outside of these time frames.
Bank of America (BAC, $22.60, up $0.37)
BAC July 23 calls (BAC170721C00023000, $0.58, up $0.15)
Entry Price: $0.60 (6/5/2017)
Exit Target: $0.90-$1.20
Return: -3%
Stop Target: None
Action: Lower resistance at $22.50-$22.75 was cleared on yesterday’s run to $22.62. Support is at $22.25-$22.
Flex (FLEX, $17.26, down $0.14)
FLEX July 18 calls (FLEX170721C00018000, $0.35, down $0.05)
Entry Price: $0.40 (6/1/2017)
Exit Target: $0.80
Return: -12%
Stop Target: None
FLEX July 17 calls (FLEX170721C00017000, $0.80, down $0.10)
Entry Price: $0.45 (5/16/2017)
Exit Target: $1.35
Return: 78%
Stop Target: 80 cents (Stop Limit)
Action: The Stop Limit at 80 cents on the July 17 calls tripped on yesterday’s backtest to $17.18.
Support is at $17.25-$17. Resistance is at $17.50.
Amicus Therapeutics (FOLD, $8.59, up $0.08)
FOLD July 8 calls (FOLD170721C00008000, $1.10, flat)
Entry Price: $0.85 (5/22/2017)
Exit Target: $1.70-$2.55
Return: 29%
Stop Target: None
Action: Wednesday’s high reached $8.68. Resistance is at $8.75. Support is at $8.25. Volume was heavy in these options yesterday and the continued closes above $8.50 are looking bullish.
STMicroelectronics (STM, $16.94, up $0.57)
STM October 20 calls (STM171020C00020000, $0.60, up $0.10)
Entry Price: $0.70 (5/15/2017)
Exit Target: $1.40
Return: -14%
Stop Target: None
STM July 17.50 calls (STM170721C00017500, $0.50, up $0.10)
Entry Price: $0.65 (5/15/2017)
Exit Target: $1.30
Return: -23%
Stop Target: None
Action: Shares traded up to $17.02 yesterday while pushing upper resistance at $16.75-$17. The 52-week high is at $17.16 with breakout potential to $18-$20. Support is at $16.50-$16.25.
Viavi Solutions (VIAV, $11.37, down $0.06)
June 12 calls (VIAV170616C00022500, $0.08, down $0.02)
Entry Price: $0.35 (5/5/2017)
Exit Target: $0.70-$1.05
Return: -77%
Stop Target: None
Action: Support is at $11.25 with yesterday’s low reaching $11.29. Resistance is at $11.75.
